Building a Future-Proof Foundation: The Imperative of Sustainable Analytics

Digital Analytics is in a state of crisis¹. Despite the wealth of data at our fingertips, many organizations find themselves burdened by overly complex systems, frustrated teams, and a lack of meaningful insights. This article explores the concept of sustainable analytics, highlighting the urgent need to shift our approach and implement long-term, sustainable practices. By addressing these challenges, we can build a future-proof foundation that not only meets our current needs but also sets the stage for continued success.

Sustainable Analytics: A Necessary Shift

At its core, sustainability is about meeting our present needs without compromising the ability of future generations to meet theirs. In the context of digital analytics, sustainable practices ensure that the decisions we make today do not negatively impact the effectiveness and efficiency of analytics in the future.

We’ve all encountered situations where immediate solutions were prioritized over sustainable ones. For instance, scraping data quickly to meet a stakeholder's demand without considering the future repercussions. This shortsighted approach leads to technical debt, poor data quality, and ultimately, system collapse.

The Current State of Digital Analytics

The state of digital analytics today can be likened to a dilapidated building, held together by a few dedicated individuals while the structure crumbles around them. Companies are investing billions in marketing technology solutions, often without a clear understanding of how these tools integrate or add value. The result is a cycle of buying more tools to solve problems we don't fully understand.

According to a Gartner survey², marketing leaders are utilizing only 58% of their martech stack’s potential, despite spending 26% of their marketing budgets on these technologies. This tool-driven approach leaves many teams feeling frustrated, burned out, and defeated. The rapid turnover in analytics professionals and the declining quality of customer experiences are clear indicators of this unsustainable path

How Did We Get Here?

To understand how we reached this point, we need to look back. In the early 2000s, Avinash Kaushik introduced the 10/90 rule³: for every 10% of budget spent on tools, 90% should be invested in people. However, many organizations flipped this ratio, investing heavily in tools and neglecting the human element. This imbalance laid the groundwork for our current predicament.

Analytics professionals also share some of the blame. We became enamored with tools and dashboards, often prioritizing volume over quality and implementation over insight. This focus on appearances rather than true value creation contributed to the unsustainable state we face today.

Principles of Sustainable Analytics

To reverse this trend, we need to adopt principles of sustainable analytics:

1. People First: Investing in our teams is crucial. We need to understand the challenges our stakeholders face and use data to support them as people, not just as roles or numbers.
   
   

2. Simplify the Ecosystem: We must question the necessity of every tool and data point. By simplifying our systems, we can ensure they are maintainable and truly valuable.
   
   

3. Focus on Maintenance: Tools require regular maintenance to provide value. If we cannot commit to maintaining a tool, we should not invest in it.
   
   

4. Strategic Investment: Only hire and partner with those who value quality over quantity and who are committed to sustainable practices.

Practical Steps for Implementation

• Designing and Planning for the Future: Consider the long-term impact of today’s decisions. Plan with sustainability in mind.
  Framework: Use a future-backwards planning approach to design sustainable analytics systems.
  
  

• Building a Sustainable Ecosystem: Streamline your tools and processes. Focus on integration and maintainability.
  Process: Implement a phased approach to tool integration, ensuring each step adds value.
  
  

• Training and Hiring for Sustainability: Hire individuals who understand and are committed to sustainable analytics. Provide ongoing training to keep skills current.
  Skills: Emphasize critical thinking, problem-solving, and a deep understanding of analytics.
  
  

• Selecting the Right Partners: Work with partners who prioritize sustainability and quality over quick fixes and volume.
  Criteria: Evaluate partners based on their track record, expertise, and commitment to sustainable practices.

Future Trends in Sustainable Analytics

The landscape of digital analytics is constantly evolving. Emerging technologies and practices, such as AI and machine learning, offer new opportunities for sustainability. However, these technologies must be integrated thoughtfully and maintained rigorously to avoid repeating past mistakes.

“Prediction: AI-driven analytics will become increasingly prevalent, but their success will depend on sustainable implementation practices.”

The story of digital analytics doesn't have to end in collapse. By embracing sustainable practices, we can create a robust, efficient, and valuable analytics ecosystem. As the Onceler from Dr. Seuss’s "The Lorax" says, "UNLESS someone like you cares a whole awful lot, nothing is going to get better. It’s not."

Let’s care enough to make a change. Embrace sustainable analytics and build a future-proof foundation for your organization.

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References:

1. The contents for this article is taken from a presentation i gave at the DHL Digital Analytics Summit. You can watch my full presentation on YouTube.

2. "Marketing Technology: Increasing Effectiveness of the Martech Stack." i-SCOOP, 2019, https://www.i-scoop.eu/marketing-technology-increasing-effectiveness-martech-stack/.

3. Kaushik, Avinash. "The 10/90 Rule for Magnificent Web Analytics Success." Occam’s Razor, 9 Aug. 2006, https://www.kaushik.net/avinash/the-10-90-rule-for-magnificient-web-analytics-success/.